Families across Alabama are celebrating a big step forward in educational access. With the passage of the CHOOSE Act, more families than ever—especially those with modest incomes—now have the financial support they need to explore private school or homeschool options for their children. Here’s what you need to know about how this program works, who qualifies, and why it matters.
What Is Alabama’s CHOOSE Act?
The CHOOSE Act — short for Creating Hope and Opportunity for Our Students’ Education Act — was signed into law on March 7, 2024, and is administered by the Alabama Department of Revenue. This landmark legislation establishes a school choice program that provides families with Education Savings Accounts (ESAs) to help cover the cost of alternative education options outside the public school system.
Whether you’re considering a private school, online program, or home education, the CHOOSE Act offers financial support to make those options more accessible for qualifying Alabama families.
What Is an ESA (Education Savings Account)?
An Education Savings Account (ESA) is a state-funded account that gives families access to public education dollars to pay for approved educational expenses outside of the traditional public school system.
In Alabama’s CHOOSE Act, an ESA is essentially a state-supported scholarship loaded with funds you can use to support your child’s learning — whether that means private school tuition, homeschool materials, or online programs like Excel High School.
How It Works:
The state deposits $7,000 (private school) or $2,000 (homeschool) per eligible student into a secure digital wallet (managed through ClassWallet).
Approved expenses may include:
- Private school tuition and fees
- Homeschool curriculum and materials
- Online programs like Excel High School
- Tutoring services
- Educational therapy or special education services
- Technology needed for learning (based on eligibility and approval)
Who Qualifies for Alabama ESAs (Education Savings Accounts)?
The CHOOSE Act was created to expand access to education options for families across Alabama — but not every student is automatically eligible. To qualify for an ESA under the CHOOSE Act, students must meet a combination of residency, grade level, and income requirements. Below is a breakdown of who qualifies and what that means for your family.
Basic Eligibility Criteria
To qualify for the 2025–2026 school year, your child must:
- Live in Alabama: Your child must be a resident of the state of Alabama. Proof of residency may be required during the application process.
- Be in Grades K–12: Students must be entering or currently enrolled in kindergarten through 12th grade. Kindergarten students must turn 5 years old by September 1, 2025.
- Meet Household Income Guidelines: Families must have a household income at or below 300% of the Federal Poverty Level (FPL), based on your 2023 tax return.
What Does 300% of the Federal Poverty Level Mean?
The Federal Poverty Level (FPL) is a government-defined income threshold based on family size. Alabama uses 300% of the FPL to determine eligibility for CHOOSE Act ESAs — meaning families can earn up to three times the standard poverty level and still qualify.
Here’s a simplified guide:
| Household Size | Max Annual Income (300% FPL) |
| 2 people | $59,160 |
| 3 people | $74,580 |
| 4 people | $90,000 |
| 5 people | $105,420 |
| 6 people | $120,840 |
Who Gets Priority?
Because funding is limited, Alabama uses a priority system to determine which applicants receive funds first:
- Students with Special Needs: The first 500 ESA spots are reserved for students who qualify under IDEA (Individuals with Disabilities Education Act) or have a Section 504 Plan.
- Siblings of Current ESA Recipients: If one child is already in the program, siblings are next in line for consideration.
- Children of Active-Duty Military Assigned to a Priority School: If a parent is in the military and the child is zoned for a low-performing public school, they receive enhanced priority.
- Remaining Applicants: The rest of the available funds are distributed based on income level, with families at the lowest income levels receiving higher priority.
Key Features of Alabama’s ESA:
Funds follow the student instead of being tied to a specific public school. Parents have flexibility in how and where the money is spent — as long as the provider is approved by the state. The goal is to help families customize their child’s education to fit their needs and goals.
How Much Funding Is Available?
The state has established two funding tiers for eligible students:
- $7,000 per student enrolled in a participating private school
- $2,000 per student in an approved home education program (capped at $4,000 per family)
Funds are distributed via a digital wallet platform called ClassWallet, starting in July 2025.
How ESA Funds Are Distributed Through ClassWallet
Under Alabama’s CHOOSE Act, families who are approved for an Education Savings Account (ESA) do not receive a check or direct deposit. Instead, the state distributes funds using a secure platform called ClassWallet — a financial technology system designed specifically for education-related spending.
What Is ClassWallet — and How Does It Work?
ClassWallet is the official digital platform used to manage and distribute ESA (Education Savings Account) funds under Alabama’s CHOOSE Act. It’s essentially a secure, preloaded online account where your child’s education funds are stored — and where you make payments for approved services and products.
Instead of receiving a check or having to request reimbursements, families use ClassWallet to spend ESA funds directly on eligible educational expenses.
Is ClassWallet Safe to Use?
Yes — ClassWallet is a secure, state-approved platform used in multiple states including Arizona, Florida, and New Hampshire. It’s designed with strong compliance and privacy protections to ensure families can manage their ESA funds with confidence. Each family receives access to a personal dashboard where they can:
- View their balance
- Track spending history
- Browse approved education vendors
- Submit invoices when needed
Unlike traditional programs, there’s no need to withdraw cash or request reimbursements — all purchases are made directly through ClassWallet and limited to state-approved educational expenses, ensuring every dollar goes toward your child’s learning.
How It Works for Alabama Families
- Account Creation: Once you’re approved for the CHOOSE Act program, you’ll receive an email from ClassWallet inviting you to set up your secure account.
- Funds Are Loaded: Beginning in July 2025, your ESA funds (e.g., $7,000 for private school) will be deposited into your ClassWallet account by the Alabama Department of Revenue.
- Browse or Pay Providers: You can search approved schools, tutors, vendors, or programs directly within ClassWallet. You can also submit invoices or choose from pre-approved providers listed in the platform.
- Funds Are Applied Automatically: When you pay a participating provider through the system, ClassWallet deducts the expense from your ESA balance and handles the payment for you.
📌 Important: All purchases must go through ClassWallet and be used only with approved vendors and services.
Sources:
https://www.revenue.alabama.gov/tax-policy/the-choose-act
https://www.wvtm13.com/article/alabama-choose-act/60123076
https://www.revenue.alabama.gov/choose-act-alabama-student-applicants-surpass-20000-mark
https://www.alabamaachieves.org/wp-content/uploads/2025/02/SBOE_20250219_Choose-Act-Alabama_v1.0.pdf
https://www.privateschoolreview.com/tuition-stats/alabama/high
